FRANKFURT (Reuters) - Economic growth in the United States may peak this year and could slow in the coming two years, Dallas Fed President Robert S. Kaplan told a business conference in Frankfurt on Thursday.
Kaplan, a non-voting member of the Fed’s policy committee, predicted that unemployment would dip below 4 percent this year, suggesting stress in the labor market.
“2018 will be a strong year in the United States,” Kaplan said. “Our Dallas Fed forecasts for GDP were somewhere between 2-1/2 and 2-3/4 percent.”
“We think we’re at or near full employment in the U.S.. We’d expect headline unemployment to dip below 4 percent during this year,” he said.
Reporting by Balazs Koranyi and Francesco Canepa; Editing by Gareth Jones